In a strategic move to bolster its financial standing, China Natural Resources has announced a significant securities purchase agreement with select institutional investors. The registered direct placement, valued at approximately $3.27 million, involves the issuance of common shares priced at $2.20 per share. Under this agreement, the company will issue a total of 1,487,870 common shares to the participating institutional investors. Additionally, a concurrent private placement will see the issuance of common share warrants, initially exercisable for the purchase of up to 1,115,903 common shares at an exercise price of $3.00 per share. These warrants will have a term of 42 months from the date of issuance.
Despite the optimistic outlook of this agreement, China Natural Resources’ stock has encountered a downturn in trading value following the announcement. The stock, which had concluded Thursday’s trading at $3.47, witnessed a notable decline in its value, opening Friday’s trading at $2.60. As the day progresses, it continues its downward trajectory, indicating a sustained decrease in value.
At the time of this publication, China Natural Resources Inc stock (CHNR) has witnessed a decline.
China Natural Resources Inc
Current Price: $1.74
Change : -1.74
Change (%): (-50.00%)
Volume: 2.1M
Source: Tomorrow Events Market Data
The net proceeds from this offering are earmarked for general working capital purposes, signifying the company’s intention to shore up its operational capabilities. The completion of the offering is slated for approximately February 21, 2024, contingent upon the fulfillment of customary closing conditions.
FT Global Capital, Inc. played a pivotal role as the exclusive placement agent for the transaction, underscoring the significance of this financial maneuver.
It’s important to note that the common shares are being offered through a prospectus supplement, which is part of the company’s effective shelf registration statement and base prospectus. This shelf registration statement (SEC Filing No. 333-268454) pertaining to these securities was declared effective by the Securities and Exchange Commission on February 10, 2023.
China Natural Resources, presently functioning as a holding company, operates in two key reportable operating segments: wastewater treatment and exploration and mining. This diversification underscores the company’s commitment to operating across multiple sectors.
As the market continues to react to this latest development, stakeholders will closely monitor China Natural Resources’ performance in the coming days, gauging the implications of this securities purchase agreement on the company’s future trajectory.
